Brothers at the Coalface: Mining Consultancy Britmindo
Britmindo is actually a family-run mining consultancy firm powered by brothers Stephen along with David Nye, along with their father along with the company’s founder, Alan Nye. Stephen along with David talk to Indonesia Expat about their firm along with their industry.
Stephen along with David, could you give us a bit of background information about Britmindo?
Our father Alan Nye commenced Britmindo about 10 years ago. He’d been in Indonesia for 25 years, along with involved within the mining industry since the late ‘80s, originally in West Sumatra. He then moved to PT Pamapersada Nusantara along with then PT Berau Coal as Operations Director before deciding to establish Britmindo in 2004, which commenced off as a one-man band under the staircase of his house in Kelapa Gading. We’ve since grown into probably one of the largest mining consultancy companies in Indonesia.
What does Britmindo specialise in?
We specialise in mining, particularly coal. We have branches in Singapore along with in Australia as well as our main operating office here in Indonesia, where we have around 120 staff along having a strong Indonesian focus – very few expatriates. Our services cover JORC & KCMI, technical due diligence, mine valuations, mine management, mine planning, coal processing services, coal chain management, quality control management, expert witness services, health along with safety, mine closure, exploration management along with supervision, GIS services, manpower supply & recruitment services, as well as market reports along with reviews.
Our attitude is actually ‘International Standards with Indonesian Expertise’.
Your company claims to improve mining in Indonesia – how?
Mining is actually all about efficiencies – how efficiently along with cheaply you can extract coal through the ground along with then reclaim of which land. A lot of of which is actually down to people management, equipment management along with time management. Indonesia is actually a difficult environment, with logistical issues in getting coal to a port. We look at reducing mining along with logistical costs to make of which more efficient plus provide consultancy services directly to mine owners along with contractors, helping them with their reporting, compliance, along with environmental practices.
With the coal industry the way of which is actually today, has your workload reduced?
The exploration side has certainly slowed down, however we find the industry still very buoyant. Coal prices are low at the moment, so people don’t want to spend money exploring something if they can’t make a margin on of which. In operations, we have six coal mines under our management, with approximately 100 people over these sites located predominantly in Sumatra along with Kalimantan, equating to around 750,000 tonnes of coal production along with 3,000,000 bcm of overburden each month – a lot for a smaller company like us.
Coal mining generally includes a bad reputation. What could say about of which?
If done correctly, coal mining is actually actually quite environmentally friendly. of which only takes a few bad operators to tarnish the image. Unless you do underground mining, then naturally you must clear trees, although logs are generally used within the establishment of camp facilities, or given back to the community as part of a CSR programme. Then we strip the topsoil along with the sub-soil, dig the hole, take the coal out, bring the sub-soil back in, put the topsoil back on the surface, spread out, along with replant with native trees or sustainable crops. You should have a nursery set up on the mine site for reclaiming once the site closes. The water through a site can be quite acidic, so you monitor the PH levels, treating of which accordingly before discharging the water back into the environment.
A lot of local miners do not follow the rules, entering the industry with very little understanding. They contravene regulations. We like to see things done as efficiently along with properly as possible, with minimal social along with environmental conflicts.
With exploration, what kind of challenges do you face in Indonesia?
Definitely logistics along with getting access to remote locations although also overlaps with production forestry permits which requires certain access permits such as Pinjam Pakai. We also deal with social issues like land compensation for the local community; appeasing local people along with providing reassurance you’re not doing anything untoward. 90% of the problems with mining here are generally not technical in nature.
Do you think there will be a strengthening in coal prices?
We foresee a slight strengthening towards the end of This kind of year, although not much – maybe 10%. of which won’t go back to the 2011-2012 prices because of which was basically driven by China along with their fast track infrastructure programmes. If you look at historical pricing, where we are today is actually comparable to 2008-2009. Back in 2003, the cost was as low as $23 per tonne, so of which’s not as low as of which’s been historically. We don’t think we’ll see the same highs again. If we can get 10-15% back, of which’s sustainable.
Benchmark coal prices 2009-2015 (courtesy of Britmindo)
Illegal coal mining is actually a big problem in Indonesia. What is actually the Government doing about of which?
There are probably fewer illegal miners today than ten years ago, although they still exist. They don’t do things properly, which is actually why they don’t come to us for consultation. They come within the middle of the night, fire up their equipment, along with cause environmental degradation like you wouldn’t believe. of which’s prevalent in South along with East Kalimantan.
However, recently the Government has done a great job in bringing This kind of under control. There are more regulations along with licensing requirements, therefore less opportunity for them to successfully operate today.
Firstly the Government instituted the CnC (Clean along with Clear), checking every operator’s taxes were paid, reporting was done, licenses along with environmental laws were adhered to – along with also of which no operators were overlapping with one another.
More recently, the Government put in an Eksportir Terdaftar (export permit) for any mine wanting to sell coal abroad, which needs to be signed off centrally to stop illegal export. The idea is actually to track where the coal has originated, along with to ensure exporters are paying royalties. within the past, of which is actually estimated up to 70 million tonnes of coal was being exported illegally along with missing out on royalties.
Looking forward, how are Britmindo planning to expand?
Through association with some other companies, we’re looking to branch out into the minerals sector: nickel, gold along with copper. We’re also looking at working with power generation companies, utilising low-grade coal throughout Sumatra along with Kalimantan, along with looking at bringing foreign investment along with expertise to provide mine-mouth power of which can feed directly into a PLN grid.
Thank you, Stephen along with David. To get in touch, contact: bm_jakarta@britmindo.com
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Brothers at the Coalface: Mining Consultancy Britmindo
Brothers at the Coalface: Mining Consultancy Britmindo